CMA wants Apple to open up iPhone contactless technology to rivals
The watchdog says Apple’s fees and restrictions are stopping competitors from launching in the UK, while rival payment apps have already emerged in the EU.
The competition watchdog says Apple’s control of the contactless technology behind Apple Pay, together with its fees and restrictions, is making it harder for rivals to compete. The Competition and Markets Authority (CMA) has proposed requiring Apple to give wallets and apps wider access to the technology that enables tap-to-pay on iPhone.
The CMA says that, unlike in the EU, no firm has launched a wallet to rival Apple’s in the UK. In the EU, a first rival payment app launched within six months of Apple agreeing to open up access, followed by apps from PayPal, Klarna, Curve and BBVA.
James Daley, who is bringing a separate legal claim against Apple over Apple Pay, alleges that Apple’s monopoly on iPhone contactless payments is used to pass on extra costs to the banks, which he says has led to higher banking costs for millions of UK consumers.
Responding to the CMA’s proposals, Daley said:
“It’s great to see the CMA calling out Apple’s anti-competitive behaviour in the payment space. Apple Pay was launched over a decade ago in the UK and yet there are still no viable alternative payment mechanisms available on iPhones.”
The CMA’s proposals now focus on opening up iPhone contactless technology to more businesses and making access commercially viable. It expects the fees Apple sets for access to be substantially lower than under its current arrangements.
Daley’s claim against Apple Pay will also reach a key stage next February, when the Competition Appeal Tribunal is due to hold a certification hearing to decide whether it can proceed as a collective action on behalf of UK consumers.
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Apple warns access could weaken iPhone security
Apple currently gives businesses access through only one of the two main contactless technology standards used internationally. The CMA wants it to support both, arguing that this would make it easier for rival payment services and other contactless apps to launch in the UK. It says the evidence it has seen suggests neither technology raises inherent security concerns. The CMA also wants access to be commercially viable. It is not proposing to set Apple’s prices, but expects the fees businesses pay to access the technology to be substantially lower.
Apple disagrees. It told the BBC that its current set-up already lets developers securely offer contactless in their apps, and that it doesn’t think the CMA should require “lower privacy and security protections”. It also argues that the rival apps launched in the EU could have launched before the rules there changed.
More competition could mean more choice on iPhones
Contactless now accounts for 39% of UK payments, up from 3% a decade ago. Which? research found that 62% of UK adults use a digital wallet, with Apple Wallet the most popular.
If rival businesses get greater access to iPhone’s contactless technology, consumers could see more payment wallets as well as new services such as digital IDs, travel passes, loyalty apps and digital car, hotel and workplace keys.
The Financial Conduct Authority’s David Geale, who is also Managing Director of the Payment Systems Regulator, welcomed the proposals and said they should support the growth of open banking, which lets people pay directly from their bank accounts.
Rocio Concha, Which? Director of Policy and Advocacy, said “choice matters to consumers” and that people who rely on their phones to pay may be missing out on new services because of Apple’s restrictions. She warned that Apple will still be able to charge a fee to rival wallet providers, unlike in the EU, so the CMA needs to make sure it can’t be used to keep competitors out.
CMA will decide whether to go ahead after consultation closes
The CMA will make a final decision after considering responses to its consultation, which closes on 17 November. Meanwhile, the Apple Pay claim is due to reach a key stage in April 2027, when the Competition Appeal Tribunal will hold a certification hearing. You can read our guide to the Apple Pay claim to find out more about the case, who might be affected and how to check whether you could be included.
